1 – The Explanation for the Changes in Cash : It provide a detailed description of how and in what amounts the cash is flowing in and flowing out of the firm. More than that it explains how the cash was generated and how it was used further during a particular accounting period.
2- Information about Non-Cash Investing and Financing Activities :Statement of cash flow is to provide a description of how much money was used in non-core activities like investing and financing activities. These activities even though non-core have a significant effect on the current and future cash flows of the firm.
